Stock Analysis & Ideas

iPhone 14 Launch: Here’s What to Know from Apple’s (NASDAQ:AAPL) Far Out Event

Story Highlights

Apple hosted its Far Out event today, where it announced the new iPhone 14 and several other hardware products, including the new Apple Watch and AirPods.

Last Updated 4:00PM EST

Apple’s (NASDAQ:AAPL) event wrapped up with the company announcing its newest generation of products. The following items are what will be released:

  • Apple Watch Series 8
  • Apple Watch SE
  • Apple Watch Ultra
  • AirPods Pro
  • iPhone 14, 14 Plus, 14 Pro, and 14 Pro Max

A Tougher and More Advanced Apple Watch

The new Apple Watch is more durable with a few new features. The first is a temperature sensor with a focus on women’s health. Indeed, by measuring a women’s body temperature fluctuations, the device can help estimate ovulation. In addition, the watch can now detect a car crash and automatically call emergency services. This can make a big difference for people who may be injured or stuck and can’t place a call with their phone. Prices will be $399 for the GPS model and $499 for cellular connectivity.

Apple has also redesigned its lower-cost SE model to include a larger screen, heart rate notifications, and fall detection similar to the Series 8. Prices start at $249 and will be available on September 16.

However, the most interesting news related to its watches is the new Apple Watch Ultra. This will be its high-end model aimed at athletes who perform in extreme conditions. It has a better GPS system that can help users retrace their steps if they get lost outdoors. Furthermore, its oceanic+ app allows divers to safely dive by alerting them of potential dangers.

Prices for the Ultra will start at $799 and will be released on September 23.

AirPods Pro – Better Sound Quality and Noise Canceling Capabilities

The new AirPods will apparently have better sound quality than previous versions. This can be attributed to an upgraded chip, personalized spatial audio, and better noise-canceling capabilities. The battery life is longer at 6 hours and a speaker has been added to the case to make it easier to find. It also has new touch controls to change the volume.

The price will be $249 and be avalilable on September 23.

An iPhone 14 That Can Connect from Anywhere

For the main event, we have the new iPhone 14 and iPhone 14 Plus. The iPhone 14 will be 6.1 inches while the iPhone 14 Plus will be 6.7 inches. New features include improved battery life, tougher ceramic screens, and better low-light performance. However, the most interesting feature is the new satellite SOS system, which allows users to connect to a satellite when in the middle of nowhere.

The phone will tell the user where to point in the sky in order to connect. It will also prompt the user to answer commonly asked questions from rescurers in order to reduce the amount of time required to communicate. The service will be free for the first two years and will initially launch in the U.S. and Canada.

When it comes to the iPhone 14 Pro and iPhone Pro Max, they include a new feature called dynamic island. The cutout for the front-facing camera expands to display notifications or other information. They also have a 48-megapixel camera and uses Apple’s new A16 chip. Apple claims its the fastest smartphone chip. It also claims that the the 14 pro is brighter than any smartphone.

The iPhone 14 and iPhone 14 Plus will cost $799 and $899, respectively. The 14 will become available on September 16 while the 14 plus will be available in October.

The iPhone 14 Pro and iPhone 14 Plus will cost $999 and $1099, respectively, and will both ship next week.

Pre-Launch – Written at 3:33AM EST

Apple’s mega Far Out event is just hours away. This virtual and in-person event will start today at 10am Pacific Time. Though Apple hasn’t given out much, it is anticipated that the company will launch several hardware products, including the much-awaited iPhone 14. 

According to several media reports, Apple’s iPhone 14 line-up will have four models: the base iPhone, Plus, Pro, and Pro Max. Further, as a companion to its mobiles, Apple could also unveil Apple Watch Series 8 and new AirPods.

Pricing and Specifications

While it is unknown how Apple will price its new iPhone and other products, Wedbush analyst Daniel Ives expects the company will not increase the price of the base model. However, he expects prices of the Pro and Pro Max versions to go up by $100. 

Regarding specifications, the analyst believes that the iPhone 14 will sport a 48-megapixel camera. He added, “iPhone 14 Pro models will also have the innovative A16 chip as more consumers head down the Pro path. There will also possibly be some storage enhancements on both the base iPhone 14/Pro.” 

iPhone 14: Projected Unit Sales and Financials

As Apple derives over 53% of its total revenues from the iPhone, it is important to keep an eye on the projected sales of the new models. Ives expects iPhone 14 sales to be in line with the iPhone 13 and projects 90 million initial orders despite the macro headwinds. 

Ives expects Apple to benefit from higher price realizations given its mix shift toward iPhone Pro and Pro Max (variants with higher average selling prices). 

It is worth noting that Apple’s 2022 Far Out event is being held a week earlier than usual. Historically, the event has been held in the second week of September. 

In response to this, Monness analyst Brian White stated, “We suspect Apple may have chosen to hold this year’s event a week earlier to add some juice to 4Q:FY22 revenue, supporting management’s qualitative guidance of accelerating YoY revenue growth in 4Q:FY22.” 

White expects iPhone 14 pre-orders to start from September 9 and be available from September 16.

Is Apple Share a Good Buy?

Per Wall Street analysts, Apple stock looks like a solid investment. AAPL shares command a Strong Buy consensus rating on TipRanks based on 22 Buys, two Holds, and one Sell. Further, AAPL’s average price target of $183.12 implies 18.5% upside potential.

Also, AAPL stock has a positive signal from hedge funds. Per TipRanks’ data, hedge funds bought 11M AAPL stock in the last three months. Further, AAPL stock has a ‘Perfect 10’ Smart Score on TipRanks, implying that it has strong potential to outperform the market.         

Bottom Line 

The new iPhone and other product launches are a positive catalyst for AAPL stock. However, macro headwinds impacting consumer spending and ongoing supply shortages could be the reasons to worry.

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